Working people not being able to afford a home or losing your life savings during a housing bubble burst?
This opinion piece at the Vancouver Sun says it’s not a question of if, but when – and when it does burst the damage to the economy will be far worse than the current affordability question.
The damage will be huge. In 1989, the Toronto bubble burst, and six years later house prices had decreased 50 per cent. Many speculators lost all of their life savings. Financial institutions were in crisis. All home building activities stopped. Unemployment increased. The flow of immigrants decreased sharply. A general economic recession developed.
Governments cannot prevent the bursting of the Vancouver bubble. They can only adopt policies to slow its growth. But these will be opposed by the many who benefit from the price increases and who, as is the case during all euphoric phases, insist that “this time, things are different”.
Read the full article here.
It’s that time of the week and that time of the summer.
Long weekend time, Happy Canada Day!
This is our regular Friday Free-for-all post – an open topic discussion thread for the weekend and news round up. Here are a few recent links to kick off the chat:
–It’s made of debt!
–“No housing bubble”
–Losses down under
–Diving in head first
–Brexit & low rates
So what are you seeing out there? Post your news links, thoughts and anecdotes here and have an excellent long weekend!
The premiere is talking tough about self-regulation in BC real estate:
“The real estate sector has had 10 years to get it right on self regulation and they haven’t,” said Clark at a Vancouver new conference.
Clark said the right to regulate the industry will be taken away from the Real Estate Council of B.C.and put into the hands of a newly established and dedicated superintendent of real estate.
“The point of regulation is to protect people, to protect consumers,” she said. “Self regulation is a privilege.”
Too little too late or just in time? Read the full article over at the CBC.
It’s the end of another work-week and that means it’s time or another Friday Free-for-all!
This is our regular end of the week news round up and open topic discussion thread for the weekend.
Here are a few recent links to kick off the chat, let’s play the blame game!:
–Blame the ALR
–Blame empty homes
–Blame early retirement
–Blame tax dodgers
So what are you blaming out there? Post your news links, thoughts and anecdotes in the comments below and have an excellent weekend!
Mayor Gregor Robertson has announced that Vancouver will move ahead with a tax on empty or under-occupied homes with our without the support of the provincial government.
The city’s report states the preferred option is for the provincial government to create and administer a new class of “residential vacant” property through BC Assessment. The designation would trigger the city to charge extra taxes on empty or under-occupied investment properties.
The second option is for the city to establish a new business tax for empty and under-occupied homes held as investment properties.
Premier Clark responded on twitter saying “We are reviewing your report and will respond quickly.”
Read the full article over at the CBC.